Unfortunately, much like the many attempts previously made by the newspaper industry to adapt to the Internet during the past 20 years, this latest idea for generating revenue online is destined for the same kind of failure pop-up advertisements met a few years ago. The appeal of the Internet for news consumers is the sheer number of free sources of information. News consumers have no shortage of blogs, podcasts and Web sites to choose from when seeking information.
Here are the five primary reasons why online access fees will not ultimately generate a great deal of revenue for newspapers and why they certainly will not save reporters' jobs.
1. The Internet is a vast sea of resources for anyone wishing to produce and/or consume news. It's cheap to start a Web site, and that means anyone with Internet access can join in on the news conversation. Where radio stations and television networks are limited in terms of expanding because of their formats and expenses, the opportunities for creating and distributing news on the Internet are limitless.
2. The concept of free information is a popular concept on the Web and it's something news consumers enjoy. If one site builds a pay wall, a free site will pop up next to it. When given a choice to access information at a price or to get the same news for free, which option are consumers most likely to choose? We want our information now and we want it free. Look for free competitors to keep popping up.
3. The newspaper industry never before relied on circulation revenue for its survival, but now leaders such as Murdoch seem to think money from readers can save everything. Why are newspapers failing to realize that they can't count on charging readers as a way to save everything? Obviously, with the decline in online advertising revenue, newspapers are grasping at anything that might bring in money.
4. While many newspapers have failed to establish an innovative online presence for the majority of the Web explosion that's been taking place over the last 20 years, many other news sources have flourished with products that appeal to consumers. Intelligent individuals have created and maintained these essential online sites. If charging access fees actually worked, those same intelligent people would have already done so. Can't newspapers learn from others?
5. Right now, many newspapers lack great online content that demonstrates that talented journalists are employed by them. I have no doubt that talented journalists are employed by newspapers. But, I also know many of them are stretched far too thin thanks to layoffs. Newspapers must offer unique content in order to become popular news sources again. Who is going to pay an access fee to read stories available elsewhere on the Web?
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